Hiring Marriott overseas employees
Foreign hotel companies are investing heavily in China
According to projections, the number of domestic tourists in China is likely to have reached a record of around 6 billion in 2019. Compared to 2018, this would mean growth of around 9 percent. A value of 6.5 billion is likely for 2020. At the same time, per capita expenditure is likely to continue to rise. The hotel industry expects revenues to rise significantly in the medium term.
Practically all market participants therefore rely on expansion. According to the Internet platform Hospitality Net, around 3,000 hotel projects with almost 600,000 rooms were in the pipeline by mid-2019. Compared to the previous year, this equates to an increase of 20 percent and 5 percent respectively. Almost three quarters of the projects mentioned were already under construction. The news platform China Travel News came up with even higher numbers: At the end of the third quarter of 2019, it counted almost 3,400 projects with around 630,000 rooms.
The three companies are expanding capacity by a quarter of a million rooms
Hilton Worldwide proves to be a leading investor according to Hospitality Net. The US group was active in China in mid-2019 with 428 projects with almost 89,000 rooms. The InterContinental Hotels Group followed closely on their heels with 360 projects or almost 81,000 rooms. Marriott International was in third place with 294 properties and almost 81,000 rooms.
Hotel projects in China
|Number of hotels||Number of rooms 1)|
|Overall, of it||2,984 to 3,387||594,000 to 629,000|
|.under construction||2,174 to 2,548||408,000 to 439,000|
|. in the late planning stage 2)||404 to 411||85.000|
|.in the early planning stage||406 to 428||101,000 to 105,000|
1) rounded values; 2) Start of construction in the following twelve months
Sources: China Travel News (mid-2019); Hospitality Net (3rd quarter 2019)
According to Hospitality Net, most hotel projects are regionally concentrated on large metropolises on the other side of the coast. Southern Guangzhou - better known and pronounced under its former name Canton - had 125 projects with a good 23,000 rooms. Chengdu, the capital of the central Chinese province of Sichuan, came up with 115 projects with 24,000 rooms.
Foreign companies dominate the luxury segment
Foreign hotel companies traditionally dominate the upper market segment or the luxury sector in the People's Republic. The big chains often operate a number of different brands. The Indian Oyo Group, which specializes in the mass market, is an exception. With a good 270,000 rooms, it is the market leader among international hotel companies.
On the Chinese side there are three leading groups: the Beijing Tourism Group (BTG) with its Home Inn company, the Shanghai Jin Jiang International Hotels Group and the Huazhu Group. Jin Jiang had more than 6,200 guest houses with more than 650,000 rooms in China in 2018, according to the financial report. Huazhu operated 3,000 hotels in early 2020, according to information on the company's website. The group maintains a strategic partnership with the French Accor group. BTG is holding back with information about its business.
In the vast majority of cases, the foreign corporations are only the operators of the hotels. The buildings are owned by China and are also being built by local firms. When it comes to furnishing luxury houses, however, there is a high demand for imported products. It starts with the building technology and goes through the equipment of the bathrooms and hotel kitchens to high-quality furnishings.
Hotels in China (2019; selection)
|.Home Inn, Home Inn Plus||BTG Home Inn||2.428||251.000|
|.7 Days In||Shanghai Jin Jiang||2.326||201.000|
|.GreenTree Inn||GreenTree Hospitality Group||2.183||186.000|
|.Thank You Inn||Sunmei International Group||1.621||85.000|
|.City 118||Urban Hotel Group||1.392||83.000|
|.Vienna Hotels||Shanghai Jin Jiang||1.183||179.000|
|.Jinjiang, Jinjiang Inn||Shanghai Jin Jiang||1.182||158.000|
|.City Comfort Inn||Dossen International Group||887||76.000|
|.99 in||Shanghai Gongsheng Hotel||773||37.000|
|.Oyo Hotel||Oyo Hotels & Homes||5.656||271.000|
|.Super 8 hotel||Wyndham||1.132||70.000|
|.Holiday Inn, Holiday Inn Express||InterContinental Hotels Group||218||53.000|
|.Crowne Plaza||InterContinental Hotels Group||146||35.000|
*) rounded values
Source: China Hospitality Association
Further information on the economic situation, industries, business practice, law, customs, tenders and development projects in China can be found at http://www.gtai.de/china. The page http://www.gtai.de/asien-pazifik offers an overview of various topics in the region.
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